How LTL claims are won and lost

A claim needs evidence of what happened and what was lost. The dock is where you can gather some of the most useful evidence, but a delivery receipt is only part of the file.

Before the receiver signs

• Count the handling units and any pieces that can be checked against the shipping documents.
• Look for crushed corners, punctures, torn wrap, water stains, leaning stacks and broken pallets.
• Record visible shortages or damage on the delivery receipt before signing.
• Photograph the freight and packaging, including the damage and shipment labels.

“Pallet 3 of 5: corner crushed, six cartons visibly affected; photos taken” says more than “damaged.” Record what you can actually see. Do not certify the condition of contents you could not inspect.

Concealed damage

This is damage discovered after delivery that was not apparent during the receiving check. Photograph the goods where you found the damage, the inner and outer packaging, and the shipment labels. Record when the shipment was opened and how it was handled after delivery.

Notify the carrier promptly and follow its inspection instructions. Keep the damaged goods and packaging until the claim is resolved or you receive written instructions allowing their release. For example, Old Dominion's cargo-claims guidance calls for concealed-damage notice within five business days. Check your carrier's terms; do not treat that example as a universal deadline.

Notice and a formal claim are separate

A damage report, inspection request or notation on the delivery receipt does not by itself meet the federal minimum requirements for a claim. A written claim must identify the shipment, assert carrier liability and request a specified or determinable amount. 49 CFR 370.3 sets out those requirements.

For claims governed by 49 USC 14706, a carrier cannot set a claim-filing period shorter than nine months. The statute also sets a minimum two-year period for a civil action, measured from written disallowance. Check the shipment's applicable terms and dates. A short concealed-damage notice window is not the same as the formal claim deadline.

What can limit recovery

Liability terms. A valid agreed limit may be less than the goods' value. The limit is not always a simple amount per pound. Check the agreement, commodity and applicable carrier rules before booking. Do not assume writing a value on the bill of lading creates full-value insurance; ask what increased liability or separate insurance is available and obtain confirmation.

Packaging and cause. Preserve evidence of the packaging and the goods' condition before pickup. Packaging suitability, handling and where the damage occurred can all affect the claim. Neither good packaging nor a damage notation guarantees payment.

Build the file

1. Keep the bill of lading, delivery receipt, photographs and correspondence.
2. Document the claimed amount with invoices, repair estimates or other evidence of the actual loss. Account for salvage where relevant.
3. Send the written claim to the proper carrier through its claims process. If your broker helps, confirm that it was filed and keep the acknowledgment.
4. Preserve the freight and packaging and cooperate with inspection requests.
5. Track deadlines and request the written basis for any denial or reduction.

Use the claim history

If damage repeats, review the packaging, loading, carrier, terminals and delivery process. A service with fewer transfers may help, but find the cause before deciding that a different mode will solve it.

Optional freight help

Have a shipment to work through?

Take the questions from this lesson to your next load. If you’d like Joseph to look at a shipment with you, visit Joseph Garcia Freight.

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